Former Indian RBI governor Raghuram Rajan has on Tuesday said, India will eventually become bigger China in the economic sector and will achieve better position creating the infrastructure, which China used to promise today.
According to NDTV news reports, while addressing a session on strategic outlook for South Asia, Ranjan said Indian economy would continue to grow more while China would slow down its growth rate.
While addressing World Economic Forum 2019, Ranjan said, “Historically, India had a bigger role in the region but China has now grown much bigger than India and has presented itself as a counterbalance to India in the region.”
Further claiming that India will surpass China in future regarding economy sector, Ranjan said, “India will become bigger than China eventually as China would slow down and India would continue to grow. So India will be in a better position to create the infrastructure in the region which China is promising today. But this competition is good for the region and it will benefit for sure.”
In 2017, India has become the sixth largest economy with GDP worth USD 2.59 trillion while China stood at the second position in the world with a GDP of USD 12.23 trillion, according to World Bank data.
At the session, Nepal’s Prime Minister KP Sharma Oli cited ties and collaboration with China and India as a reason for his country’s economic growth. Afghanistan chief executive officer Abdullah Abdullah also cited greater collaboration with these countries in the region.
Rajan, while citing opportunities to create regional companies, he said besides FTA (Free Trade Agreement), there is a lot of scope for work to be done. Besides, business, the social sector could be another way which could move students across the region for sharing.
While citing that people movement, especially youths going abroad, could have a strong impact, Ranjan said India remains the largest country in the region among others and it must play its role which is needed.
He added that there are many sectors and regions where India has funded, but more can be done along with on trade side, to cut off tariff rates. Mr. Rajan said he is hopeful of results, if not today, they may be at Davos meetings later.